When you think about home insurance, you probably imagine coverage for fires, storms, or other sudden losses. But what about hidden costs that come up during repairs? That’s where building codes coverage, also known as ordinance or law coverage, comes in. It helps pay for required upgrades to bring your home up to current building standards after a covered loss.

What Is Building Codes Coverage?

Building codes or ordinance or law coverage protects homeowners from the extra costs of rebuilding or repairing their homes to meet current local building codes after damage.

Standard home insurance pays to rebuild your home as it was, but it doesn’t include costs to bring your property up to modern standards.

That’s where this coverage steps in.

**Example: A Tennessee Fire Scenario**

Imagine your 1980s Hendersonville home suffers a kitchen fire. When rebuilding, the city now requires:
Updated electrical wiring and GFCI outlets
Energy-efficient HVAC system
Fire-resistant siding

Your regular home insurance covers the structure, but building codes coverage helps pay the difference between old and new requirements, saving you thousands.

Why It Matters for Tennessee Homeowners

Tennessee’s building codes are regularly updated to improve safety and energy efficiency. Cities like Cookeville, Franklin, and Mount Juliet often enforce these updates when homes are repaired after a loss.

Without this coverage, you might face out-of-pocket costs for:

Upgrading old plumbing or electrical systems
Meeting new wind or storm resistance standards
Installing safety features like reinforced roofing or fire-rated doors

Even small code changes can add up quickly when you’re rebuilding part, or all, of your home.

What Building Codes Coverage Includes

This endorsement generally covers three key areas:

1. Undamaged Portions of Your Home: If part of your home is damaged but the rest must be demolished to meet code, this coverage helps pay for those additional losses.

2. Increased Cost of Construction: This covers the extra expense of upgrading your home to comply with local laws, such as new electrical systems or improved insulation.

3. Demolition Costs: If a portion of your home must be torn down to meet code, the demolition and debris removal are covered.

How Much Coverage Do You Need?

Most insurers offer ordinance or law coverage as 10%, 25%, or 50% of your dwelling limit.

For example: If your home is insured for $400,000, then 10% ordinance coverage would provide up to $40,000 for code-related upgrades.

A Holt Insurance agent can help you determine the right percentage based on your home’s age, location, and city requirements.

Does My Policy Already Include It?

Some modern home insurance policies include a small amount of ordinance or law coverage automatically, but older or basic policies may not.

Review your policy declarations page, or contact your Holt Insurance agent for a quick policy review. It’s often one of the most affordable, and valuable, add-ons for homeowners with older properties.

Peace of Mind, Made Simple

At Holt Insurance, we believe in People, Not Policies. That means helping you understand what’s really protecting your home and your peace of mind.

Building codes coverage ensures that when the unexpected happens, you can rebuild safely and confidently, without worrying about surprise upgrade costs.

FAQ’s

It’s coverage that helps pay to rebuild or repair your home to meet current local building codes after a covered loss.
No, but it’s highly recommended, especially for homes more than 10–15 years old.
It’s usually a small percentage of your premium, often less than $50 per year for 10%–25% coverage.
Yes, though it’s more valuable for older homes since newer ones already meet modern code requirements.
Not unless you have ordinance or law coverage included in your policy.
Yes, most insurers (including our partner carriers) allow you to work with licensed contractors of your choice.

Ready to Review Your Coverage?

Talk with a Holt Insurance agent today about adding building codes coverage or reviewing your home policy. We’ll make sure you’re protected the right way so you can focus on what matters most.

What Is Building Codes Coverage in Home Insurance?